After months of market silence, the crypto market is back in action. Bitcoin has jumped to $104,000, returning to its highs from February. Ethereum surprised everyone by rising 20% in just one day, while XRP also moved up by 7%. So, what’s pushing these top cryptocurrencies higher today?
So, what’s driving the Bitcoin, Ethereum, and XRP prices up? Let’s find out the reason behind this sudden rally.
Fed Kept Interest Rate Unchanged
Bitcoin and other cryptocurrencies started rising after the Federal Reserve decided to keep interest rates the same on May 7. They kept the rates between 4.25% and 4.50% because of worries about slow growth and high inflation.
Jerome Powell also said that tariffs could hurt the economy. As a result, investors turned to crypto as a safety net.
Global Trade Agreement Is Easing
Adding to the optimism, the U.S. and U.K. announced a major trade agreement that not only reduces tariffs but also improves access between markets.
And there’s more to come, U.S. and Chinese leaders are getting ready to talk about trade again, which could lead to even lower tariffs. That would be another win for the crypto world.
Bitcoin Dominating the Surge
Bitcoin’s rise is not just from news, it’s also backed by strong support. U.S. states like Missouri, Arizona, and Oregon passed new crypto-friendly laws. Missouri even removed taxes on Bitcoin gains, making it easier for people to invest.
At the same time, Bitcoin ETF saw a consistent inflow of funds pouring into it. On May 8, BTC ETF saw an inflow of $117 million, leading the charge was BlackRock with $69 million, followed by Fidelity & ARK Investment with $35.3 million & $13.1 million
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Ethereum’s Pectra Upgrade
While Bitcoin saw an overall 5% surge, Ethereum, on the other hand, stole the spotlight with its Pectra upgrade, improving wallet access and increasing staking limits. This technical leap pushed ETH above $2,220, making it the day’s biggest gainer in the top 25 coins.
Despite the rally, Ethereum’s price is still almost 55% down from its all-time high of $4721.
Ripple XRP Growing at Faster Paces
Meanwhile, the 4th largest cryptocurrency by market cap, XRP, also saw a boost, up nearly 7%, currently trading around $2.29. An additional push in the price came right after the news that Ripple and the SEC might be nearing a settlement.
Along with this, Ripple’s new deals with Hidden Road and Wellgistics Health adopting XRP for payments have helped boost its price further.
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FAQs
The crypto market surged due to steady Fed rates, strong Bitcoin ETF inflows, and positive global trade developments boosting investor sentiment.
States like Missouri passed crypto-friendly laws, including tax exemptions on gains, encouraging more Bitcoin investment.
Bitcoin’s price rose due to steady interest rates, ETF inflows, state-level crypto laws, and rising demand as a hedge against inflation.
Ethereum jumped 20% after the Pectra upgrade improved wallet access and raised staking limits, boosting investor confidence.
XRP rose 7% on Ripple’s adoption deals and reports of a nearing SEC settlement, fueling market optimism.
